Closed in NY at $1.5989 after rate had seen an impressive bounce off $1.5960 lows to $1.6018, the rate then pulling back to $1.5985 into the close. Rate was squeezed to $1.5982 (61.8% $1.5960-1.6018) in early Asia before edging to an initial high at $1.5999. Positive react in euro-dollar to euro/ECB support comments from IMF Zhu saw cable track this rate higher, moved up to retest the $1.6018 level. Rate then settled between $1.6005/15, eased to $1.6003 into early Europe, currently trading around $1.6005. Offers remain in place at $1.6018,a break above $1.6020 to open a move back toward Friday highs at $1.6034. Support now seen between $1.5990/80, a break to expose $1.5960, the level that the rate bounced off Monday on reported ‘smart money’ demand. Euro-sterling, which had seen highs Monday at stg0.80115, eased to a low in NY at stg0.7977, with trade in Asian contained by stg0.7974 -0.79865. UK trade data at 0830GMT provides the domestic interest, with new MPC member McCafferty meeting UK lawmakers at 0900GMT.
EasyForexNews Research Team